Travel buyers are facing a changing industry influenced by a number of macro trends and a wider scope of their responsibilities. They must set a program strategy that considers priorities across customer, cost and care and then determine the best way to execute that strategy. So how can a travel manager navigate these complexities and ensure their program is not only effective but also future-proof?
It starts by thinking like an architect and deciding how you want to build your program. We’ll share the four blueprints that are available, the considerations that come with each, and the effort that it takes to implement.
So put on your hard hat and look at what you can build.
Model 1:
Closed Shop – The Traditional Approach
In the Closed Shop blueprint, the appointed Travel Management Company (TMC) manages all aspects of the travel program. Acting as the sole provider, the TMC offers an all-in-one solution, which simplifies travel management by centralizing services. This approach reduces the need for multiple supplier relationships but can limit flexibility. Organizations may find themselves reliant on the tools and services the TMC offers, which can hinder access to innovative microservices tailored to specific needs.
Model 2:
Open Shop – Flexibility Within TMC Management
The Open Shop blueprint enhances flexibility by allowing TMCs to integrate additional services on behalf of the client. This approach means that while the TMC remains a central provider, it can also introduce best-in-market tools that meet essential security and quality standards. Companies benefit from a broader range of services and preliminary vetting of microservices. However, this blueprint can still limit control, as the TMC plays a key role in negotiations, potentially restricting the organization’s influence over contracts and service terms.
Model 3:
Department Store – A Hybrid Approach
The Department Store blueprint offers a more customized approach to travel management by selectively unbundling services. The TMC is retained for core functions – such as booking or servicing – while the organization directly contracts other microservices. This allows travel managers to select the best tools for specific functions, providing greater control and ownership over the travel program. However, this flexibility requires significant time and resources to manage multiple suppliers and drive seamless integration.
Model 4:
Bring Your Own (BYO) – Full Autonomy
For organizations seeking maximum control, the BYO blueprint provides the ultimate autonomy. In this setup, the organization contracts all travel services directly, utilizing the TMC only for peripheral management. This empowers companies to curate their travel program with the best microservices available. However, it demands substantial internal resources to oversee supplier contracts and integration, making program architecture a vital aspect of implementation.
So Which Blueprint is Right?
As the architect, travel managers get to decide what is the right fit based on their business strategy, as different blueprints fit different needs. If the decision is unclear, an assessment of both the current state of the travel program and its future aspirations may be needed to understand company priorities, traveler requirements and external market opportunities. It’s also important to consider the effort involved in adopting each blueprint by thinking about the Will, Skill and Bill.
Will: What is your ambition level? Are you ready for the journey that partnering or building a solution might require? Look at how your company approaches other functions – does it typically buy, partner or build? Understanding this can help gauge senior leadership’s buy-in and shape the business case for your chosen path.
Skill: What in-house capabilities do you possess? Choosing to partner or build requires not just a capable travel team but also support from IT and other departments. Assess whether your organization has the resources and talent to manage complex integrations and relationships.
Bill: Do you have the budget? The financial commitment increases as you move from Buy to Partner to Build. Buying an off-the-shelf solution may be cost-effective upfront but could limit flexibility and customization. On the other hand, partnering or building will demand greater investment but can offer enhanced control and future-proofing.
Future-Proofing Your Travel Program
As the landscape of corporate travel continues to evolve, the importance of future-proofing your travel program cannot be overstated. Recent polling by Festive Road indicates that the Department Store model is becoming increasingly popular among corporate travel buyers reflecting a growing desire for flexibility and control while still leveraging the support of a TMC. Technological advancements and the rise of microservices are making models like Department Store and BYO more accessible, allowing travel managers to build programs tailored to their unique needs without sacrificing efficiency.
The tools available have evolved, empowering you to choose a blueprint that aligns to your future vision. Are you ready to build it?
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